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description

In April 1986, the Ryan brothers announce that their fledging Irish airline Ryanair will soon commence service between Dublin and London. For the first time, Ryanair will face formidable competitors such as Aer Lingus and British Airways on a major route. Students are asked to assess Ryanair's entry and anticipate the response of incumbent carriers.

learning objective:

To analyze the dynamics of competition. Provides cost and revenue figures to allow students to examine the economics of retaliatory pricing in a business with high fixed costs and low marginal costs.